South Korean media: Geely surpasses BYD... Selling electric and fuel vehicles together to overcome the crisis

The Chinese electric vehicle market landscape is changing. China's BYD (BYD), which has been sitting on the "number one global electric vehicle company" throne, is facing a downturn in its domestic market, while Geely Auto, which sells both electric and fuel vehicles, has overtaken BYD in sales, leading to a change in the market landscape. Analysts say that as the demand for local electric vehicles in China slows down due to reduced subsidies for electric vehicles, one brand has "put all its eggs in one basket" by focusing solely on electric vehicles, while another brand has a dual strategy of electric and fuel vehicles. The difference in their strategies has already become evident in actual sales figures.

On the 9th, according to foreign media reports such as CnEVPost, in the Chinese domestic market, Geely Auto sold 476,327 units from January to February this year, leading BYD (402,410 units) by about 76,000 units. The last time Geely Auto led BYD for two consecutive months was in January-February 2022, when BYD was about to stop producing fuel vehicles. In the same period of 2024, BYD sold 623,384 units, leading Geely Auto (471,647 units) by about 32%, but since the beginning of this year, BYD's sales have dropped by about 36%, reversing the rankings.

The reason behind this is the slowdown in the growth of the Chinese electric vehicle market. Starting this year, the Chinese government has reduced electric vehicle subsidies and ended tax exemptions, causing a significant drop in consumers' willingness to buy electric vehicles. Under these circumstances, BYD's strategy of focusing solely on electric vehicles has become a burden. Even considering the temporary decline in production and consumption due to the Spring Festival holiday in February, the drop in BYD's sales is extremely rare.

In contrast, Geely Auto has multiple product lines, including electric vehicles, hybrid vehicles, and fuel vehicles. By streamlining its main models centered around the small hatchback "Xingwan" and the high-end electric vehicle brand "Zeekr," it has achieved an effect of increasing sales. In fact, although Geely Auto's electric vehicle sales decreased by about 16,000 units year-on-year in January-February this year, its hybrid (PHEV) vehicle sales increased by about 38,000 units. The increase in hybrid vehicle sales offset or even exceeded the decline in electric vehicle sales.

The public opinion believes that due to the intensified competition in the Chinese domestic market, South Korean automakers such as Hyundai and Kia will inevitably face challenges. The excess capacity that cannot be absorbed by the Chinese domestic market will spill over to overseas markets, inevitably intensifying price competition. According to an industry insider, "If Chinese automakers launch low-price electric vehicle campaigns in overseas markets such as South Korea, the competition for market share will become increasingly fierce."

Source: Chosun Ilbo

Original article: toutiao.com/article/1859240466726024/

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